Financial Aid Terms
Applying for financial aid can feel overwhelming, especially with so many unfamiliar terms and processes to navigate. To help, we’ve created a guide to common financial aid terminology. You’ll find key terms related to funding your education, including those commonly used across higher education as well as those specific to UHD.
Federal Aid
Financial assistance provided by the federal government, such as Pell Grants and federal
student loans.
Financial Aid
Financial aid refers to funds provided to help students pay for college expenses such
as tuition, fees, books, housing, and other educational costs.
Financial Aid Disbursement
The process of applying your awarded financial aid directly to your student account
to cover tuition, fees, and other school-related charges.
Grants
Money that does not need to be repaid.
Institutional Aid
Scholarships or grants offered directly by the university.
Loan Aggregate Limit
The maximum total amount a student can borrow in federal student loans over their
academic career.
Loan Entrance
A required online session that explains student loan responsibilities before borrowing
federal loans.
Loans
Borrowed money that must be repaid with interest.
Master Promissory Note (MPN)
The legal agreement a student signs promising to repay their federal student loan
and outlining the loan terms.
R2T4 (Return of Title IV Funds)
The calculation of how much the student earned and how much must be returned to the Federal Government when a student completely withdraws from the semester.
Scholarships
Merit or need-based awards that do not require repayment.
Special Circumstance Form
A form students may submit if their financial situation has changed and is not reflected
on their FAFSA.
State Aid
Financial aid funded by the state government, often based on residency or financial
need.
Subsidized Loan
A need-based federal student loan where the government pays the interest while you
are enrolled at least half-time, during your grace period, and during deferment.
Unsubsidized Loan
A federal student loan that is not based on financial need, and interest begins accruing
immediately, meaning you are responsible for paying all interest from the time the
loan is disbursed.
Work-Study
Part-time employment opportunities for students.